Global investments for sustainable growth in the wireless telecommunication industry

Since its establishment in 1992, NTT DoCoMo had accomplished rapid growth by developing innovative strategies and meeting consumer demands. However, the population-based penetration rate of Japanese wireless phones now exceeds 70%, and the market is approaching saturation. Tariff reduction battles have occurred among competitors since the introduction of flat rate packages in 2004. Furthermore, this competitive environment will become even more fierce with the introduction of Mobile Number Portability and the addition of new entrants It is difficult for Japanese wireless telecom operators to achieve sustainable growth if they continue to follow existing business models. DoCoMo therefore has begun to implement a new business platform, 'Mobile Wallet' on which DoCoMo aims to build an unprecedented business model-the fusion of its credit card and wireless phone businesses. DoCoMo still generates a high level of cash flow from its existing businesses, even though its growth rate has decelerated. In addition to the new strategy that has been implemented for the domestic market, I believe DoCoMo should reinvest its abundant investment resources effectively into markets with high growth potential in order to increase the company's corporate growth.

Department dc:contributor.department

Sloan School of Management.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2006

Author dc:creator

• Matsuda, Osamu, M.B.A. Massachusetts Institute of Technology

Advisor dc:contributor.advisor

• Michael A. Cusumano.

• Sloan School of Management.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/37233

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/37233